The Secretary of State for Defence (Mr Ben Wallace)
The Ministry of Defence (MOD) has acquired Sheffield Forgemasters International Limited (SFIL), allowing HM Government to refinance the company and secure the supply of components for critical current and future UK defence programmes.
The MOD also intends to invest up to £400 million in SFIL over the next 10 years for defence-critical plant, equipment and infrastructure to support defence outputs. The acquisition has been assessed as the best value for money for the taxpayer due to SFIL’s unique capabilities and circumstances. The immediate cost of the acquisition is £2.56 million for the entire share capital of the company, plus debt assumed.
SFIL is the only available manufacturer with the skills and capability to produce certain large-scale high-integrity castings and forgings from specialist steels in an integrated facility to the highest standards required for specific defence programmes. SFIL’s ownership by the Government will not prevent other UK based manufacturers bidding for MOD contracts, which will continue to be run in an open and fair competition.
The MOD has already started working closely with the company to implement best practice governance that will ensure appropriate financial oversight to secure the company’s future success, with the aim eventually to return the business to the private sector.
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